If your property was damaged, understanding which type of insurance claim you are dealing with is one of the most important early decisions you will make. A first party insurance claim attorney in Los Angeles handles these situations differently depending on whose policy is involved, and the strategy for each type of claim is not the same. Getting this wrong at the start can cost you money and rights you cannot recover later. Here is what you need to know before you begin the process.
What is a first-party claim?
A first-party claim is when you file a claim with your own insurance company. You paid for a policy, your property was damaged, and now you are asking your insurer to honor the coverage you purchased. Common first-party claims include fire damage, water damage, roof damage, smoke damage, and losses from a wildfire. The dispute is between you and your own insurer.
This is where most bad faith insurance conduct happens. Your insurer has a direct financial incentive to pay you as little as possible. They may undervalue your losses, dispute the cause of damage, drag out the investigation, or delay the process until you accept a lower settlement out of frustration. California law gives you significant rights here, but most homeowners do not know what those rights are until it is too late. An attorney who handles first-party claims can identify coverage you may not realize you have and push back against tactics designed to reduce your payout.
What is a third-party claim?
A third-party claim is when someone else caused damage to your property and you are pursuing their insurance company for compensation. If a neighbor’s tree fell on your house, your HOA was negligent in maintaining a common area, or a contractor caused water damage while working on your property, you would file a claim against their liability insurance. The dispute is between you and someone else’s insurer.
Third-party insurers have even less obligation to treat you fairly than your own insurer does. They represent the party who caused the damage, not you. They will investigate the claim in a way that protects their insured, not in a way that maximizes your recovery. Having an attorney is often the difference between a fair settlement and walking away with nothing.
Can you have both types of claims at the same time?
Yes, and it is more common than people realize. If a neighbor’s plumbing failure caused water damage to your home, you might file a first-party claim with your own insurer for immediate coverage while simultaneously pursuing a third-party claim against your neighbor’s liability policy. The two claims need to be coordinated carefully so you do not inadvertently waive rights or create coverage gaps. An attorney can manage both tracks simultaneously, making sure you maximize your total recovery and do not make statements in one proceeding that undermine the other.
Which type of claim do you have?
The simplest way to figure this out is to ask: whose insurance am I filing against? If it is your own policy, it is a first-party claim. If it is someone else’s policy because they caused the damage, it is a third-party claim. In some situations you may have both, and in those cases the sooner you get legal guidance, the better your outcome is likely to be.
CaliClaims Law handles both first-party and third-party property damage insurance claims throughout Los Angeles. Whether you are dealing with your own insurer or pursuing a third party, understanding which type of claim you have determines the strategy. Call (844) 776-7364 for a free claim review.